Chapter 2 – Fiscal Management

21050.4.3 Collection – Indirect Overhead

• Activities associated with grants, contracts, and interagency agreements generally operate on a budget agreed to by all parties involved. In addition, indirect overhead costs associated with these activities may be generated which either do not operate on a formal budget or have recovered expenditures that are intangible or unidentifiable.

• The indirect overhead costs are billable and recoverable according to SAMState Administrative Manual §§ 8752 through 8758.1. Institutions and programs must use the currently approved rate (per agreement/contract) and provide the pertinent information to ASBOffices identified as: ASB Bakersfield, ASB Corcoran, ASB El Centro, ASB Paso Robles, ASB Rancho Cucamonga, ASB Sacramento, ASB Stockton for indirect costs. Indirect charges are reimbursable to the GFGeneral Fund.

• If there is no contracted or budgeted amount, indirect overhead will not be established budgetarily until the annual level of collections can be reasonably estimated from a few months’ actual billings. Requests for budget adjustment will be forwarded to BMBBudget Management Branch or FMS.